Bitcoin Price Surges, Breaks Key Resistance as Institutional Investment Grows
Bitcoin prices have surged, breaking key resistance levels and attracting significant institutional investment. Meanwhile, upcoming economic data and geopolitical events could influence its trajectory.
Bitcoin's price climbed from $108,650 to nearly $114,000 in just two days, breaking out of a descending channel and surpassing both the 50- and 100-period Simple Moving Averages (SMAs). This bullish momentum has formed a double-bottom pattern, with a potential price target of $127,000.
Institutional investors are taking notice. Metaplanet Inc., a Tokyo-based company focused on Bitcoin treasury reserves, acquired an additional 196 BTC worth $22.1 million during last week's dip. This purchase brings its total holdings to 640,031 BTC, making it the largest public Bitcoin holder.
Looking ahead, the U.S. non-farm payrolls (NFP) data will provide insights into the American labor market's health and help predict the Federal Reserve's interest rate decisions. A U.S. government shutdown could also benefit Bitcoin, potentially increasing the probability of the Federal Reserve cutting interest rates. However, downside risks remain if support at $113,000 and $112,600 is lost, which could open a path toward $110,350 and $108,700.
Bitcoin's strong performance in recent days has set the stage for potential gains in the fourth quarter, with other cryptocurrencies like Ethereum, XRP, and Solana likely to follow its lead. However, traders should remain vigilant for potential downside risks and keep an eye on key economic indicators and geopolitical developments.
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